The Commerce Group Earnings Rise
NU Online News Service, Oct. 27, 2:40 p.m. EST?The Commerce Group Inc., a Webster, Mass.-based insurer, posted $22.9 million in profit for its third quarter, nearly doubling the $12.6 million in income it posted one year ago?thanks to improved investment income and higher earned premiums, the company said.
The company, the largest personal auto insurer in Massachusetts, had net realized investment gains of $2.6 million for the third quarter. In contrast, the insurer had recorded $13.4 million in net realized investment loss during the corresponding period last year.
The insurer's earned premiums for the quarter also improved to $372.7 million, higher than $309.1 million posted one year ago.
The Commerce Group's statutory combined ratio for property-casualty operations for the third quarter was 98.9 percent, down from 99.4 percent recorded during the year-ago period. The company said the drop in the combined ratio was primarily a result of a decrease in the loss ratio, which declined to 74.9 percent from 76 percent during the past year.
The Commerce Group gets nearly half of its premiums through its affinity marketing program with Massachusetts's AAA clubs. The company also offers homeowners, earthquake, flood, business and personal umbrella insurance products. Additionally, American Commerce Insurance, The Commerce Group's joint venture with AAA Southern New England, writes auto and homeowners insurance in some 25 states.
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